Fannie Mae (FNMA)

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Inside Mortgage Finance
Senators Ask FHFA to Withdraw GSE Refi LLPA Immediately

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Seven U.S. senators — six from the Senate Banking Committee — shot off a letter to Federal Housing Finance Agency Director Mark Calabria Wednesday night asking the regulator to immediately halt a 50 basis point adverse market fee the GSEs are imposing on their seller-servicers.
The loan-level price adjustment, which affects mortgages slated for Sept. 1 and beyond delivery dates, applies to most Fannie Mae/Freddie Mac refinancing transactions.
The industry has been in an uproar since the LLPA was introduced roughly 10 days ago, saying it’s ill-timed given the pandemic and will hurt both consumers and lenders.
Signed by five Republicans and two Democrats, the letter says it’s “deeply troubling” the FHFA would allow the new fee “during what is universally agreed to be a period of great economic distress ... We therefore request that you immediately act to require that the GSEs withdraw this fee to prevent further harm to everyday Americans and our economy.”
The elected officials add they find it distressing that such a large fee would be introduced “with no consultation with Congress and no notice to external stakeholders.”
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